So
you are interesting in becoming a landlord? Investing in rental properties can
be an exciting and very profitable business. Not only can real estate provide
current income through rental property but it also can increase your personal
wealth or networth. Make no mistake, this is not a sure thing to easy money and
investing in real estate is not for everyone. There are risks as with any business
or investment but with careful research and the help of a real estate professional
you can find the right property in the right location for maximum return on your
investment.

Steps
to purchasing your rental property

Meet
with a mortgage broker to determine how much you can borrow and to obtain approval
for a loan.

Next
you need to determine the type of property you are looking for. Will it be a single
family home or commerical property with multiple units?

When
you have a potential property identified estimate the possible rental income you
could expect from this property based on comparable rentals in the area.

Determine
your anticipated cash flow from the rental. You will need to consider income from
rent compared against all expenses including the mortgage, insurance, property
taxes, maintenance, and repairs.

Be
sure to review the potential tax consequences of your purchase.

Rent
the property until you determine it is in your best interest to sell it.

Because
of the potential financial and tax consequences of your decisions, it is very
important to consult with a professional real estate agent throughout this process.
You will also likely need the assistance of an attorney and a tax advisor.

About
The Author

Jakob
Jelling is the founder of http://www.cashbazar.com.
Visit his website for the latest on personal finance, debt elimination, budgeting,
credit cards and real estate.